>> tomorrow on wednesday that's going to feel like a monday,ing we've got the ceo and founder of eharmony joining us. >> and also radio, call xm now, tell them where you stand. >> after the show show now. >> a fox news alert, the fiscal

fight now moves to the house after the senate overwhelmingly approving a last minute deal with the white house to avert tax 3450eubg hikes on most americans, but the fight is or far from over. the bill now goes to the republican-controlled house of representatives where its future is much less certain. good morning, i'm rick folbaum here in this special new year's day edition of "america's newsroom." heather: i'm heather childers, bill and martha are off this morning. it was a knockdown, dragout battle to the finish between senate democrats and republicans. in the end, the measure passed 89-8 but with mixed emotions on both sides. >> i've said all along that our most important priority was to protect middle class families. this legislation does that. middle class families will wake up today to the assurance that their taxes won't go up. >> it does not address the number one priority, creating good middle class jobs now. secondly, this proposal does not generate the revenue necessary

for the country to meet its needs. >> so it took an impermit solution to prevent our constituents from a very real financial pain. but in my view, it was worth the effort. rick: so those are the senators. chief congressional correspondent mike emanuel is live on the hill. so, mike, the house is going to get this. any idea what the house plans to do with it? >> reporter: happy new year. the house gop leadership meets with its members about three hours from now. they wanted to give their members a chance to figure out, to study what is exactly in this package, but we do not have any update in terms of when they could potentially take this up for a vote. we heard from a member of the house gop leadership speaking for himself but making it pretty clear he doesn't love the deal. >> ultimately, this is going to fall on working class people, it's going to harm jobs, and it does nothing to do with our deficit. so i'm not terribly impressed by what the senate came up with,

but i know my senate republican colleagues, you know, they're operating with a gun on their head, and i understand that. >> reporter: utah republican congressman jason chaffetz tweeted and e-mailed me this comment, quote: without substantial first-year cuts in spending, i can't vote for the bill passed by the senate late last night. we expect to hear some of that from some republicans in the house. the question is how much of that. rick? rick: the vote in the senate, mike, was pretty overwhelming. a lot of bipartisan support even though everybody seems to be a little bit disappointed they didn't can great everything they wanted. >> reporter: you're correct, and there are a lot of people who think by that overwhenning 89-8 vote which is very hard to do here in washington, that that may help anytime the house, to show that so many senators stuck their necks out. this was a deal hammered out by vice president joe biden and senate leader mitch mcconnell. as the nation was heading for

the fiscal cliff, here is the senate republican leader's closing argument. >> each of us could spend the rest of the week discussing what a perfect solutioning would have looked like, but the end result would have been the largest tax increase in american history. the president wanted tax increases, but thanks to this imperfect agreement, 99% of my constituents will not be hit by those hikes. >> reporter: and you expect to hear that argument a lot in the coming hours as people try to sell this over in the house. house republicans voted to extend all the bush tax cuts, but harry reid never took that up. and so this is the only vehicle possible to avoid a massive tax hike for the entire country, rick. rick: well, we'll see what happens over the next several hours, and i have a feeling you and i will be talking again throughout the day. happy new year to you, mike. see you again soon. heather: that final deal was hashed out by senate minority

leader mitch mcconnell and vice president joe biden. here's the vice president on capitol hill last night just before the senate vote. >> i feel really very, very good about how this vote's going to go. but having been in the senate as long as i have, two things you shouldn't do. you shouldn't predict how the senate's going to vote before they vote, you won't make a lot of money and, number two, you surely shouldn't predict how the house is going to vote. but i feel very, very good. i think we'll get a very good vote tonight. but happy new year, and i will see you all maybe tomorrow. [laughter] [inaudible conversations] heather: vice president biden, of course, served 36 years in the senate representing the state of delaware. according to mike emanuel, he is sometimes referred to as the mcconnell whisperer. that's because of his alleged ability to work with the minority leaderrer. rick: well, so here's how the

vote last night in the senate broke down. we want to show you the numbers here. as you heard, the measure passed happenedly, 89-8. among the nays there were three democrats and five republicans, and overall three senators didn't vote at all. heather: well, as mike said, the bill now goes to the republican-controlled house of representatives which meets at noon today. but there are a host of other bills on the agenda, and it's unclear when house lawmakers will vote on the fiscal cliff deal, if they will. joining us now from washington, one of the lawmakers at work in the house today, south carolina republican mick mulvaney, and he is on the budget committee. thanks so much for joining us. >> thanks for having me. heather: this joint statement was released by the entire house leadership team. it says this, quote: the house will honor its commitment to consider the senate agreement if it's passed. decisions about whether the house will seek to accept or

promptly amend the measure will not be made until house members and the american people have been able to review the legislation. so what do you think is going to happen in the house today? will there be a vote on the senate bill? >> well, i think the statement, actually, is fairly reasonable and the right thing to do. we'll be meeting at 1:00 this afternoon as a republican conference to, i suppose, look at this bill together as a group, that gives us a few hours to look at it. this is not a simple piece of legislation. we expect it'll be well over 100 pages by the time we get the hard copies of it, so i think to jump to conclusions is the wrong thing to do. i'm always surprised people say they will support something or even won't support it before they read it. but i think, obviously, the market's not open today, a national holiday. there's no reason to rush to a vote later this afternoon. heather: you know, a 41 to 1 ratio of tax increases to spending cuts in this bill. and according to the

congressional budget office, the senate bill cuts only 15 billion in spending while increasing tax revenues by 620 billion. >> and we actually -- heather: what do you think about that in the bill? >> we actually haven't been able to find the 15 billionending cu. unemployment insurance being extended to federal workers getting raises to medicare increases, everything we've seen shows increases in spending. the president calls it a balanced approach. to me, that would mean taxes would with go up and spending would go down. that will be problematic for me and members of the house. heather: you just kind of hinted at my next question. as the bill stands right now, if it comes before the house, what would you vote, yes or no? >> again, it's 100 pages long, i haven't finished reading it yet. if there's to spending cuts in it, it's going to be a problem for me. the delay of the sequester is a problem. everyone talks about balance, getting things they like and

don't like. clearly, there are things i like, the amt fix, the death tax fix. but for those of us who are interested in cutting spending, it looks like there's nothing in the bill for us, and that'll make it difficult to support the bill. heather: you just mentioned the sequestration, it calls for 500 billion in defense spending cuts over a decade. that amounts to about 50 billion annually. this delays for two months $109 billion worth across-the-board spending cuts set to start striking the pentagon and domestic agencies this week. so what do you think about the sequester? does it just kind of -- i don't want to use this phrase, but kick the can down the road? want after two months? >> we probably do this again. i'm not really sure why it's there. i'm not -- i don't understand who it's there to keep happy, who asked for the sequester delay. if it was the democrats, that's one thing, if it was the republicans, that's another.

the house had a good plan to replace those sequester cuts with other, better cuts. so the sequester's going to be a big problem over here for those of us who are interested in reducing spending. heather: so i want to talk about whether this will, in fact, come up in the house today when they convene, i think it is noon unless that's changed. the house has informally operated under the hastert rule. basically, house gopers similarly will -- simply will not bring up a bill that does not have the majority party in the favor. even if it could pass with a colegislation of some of the members -- coalition of some of the members. do you expect speaker boehner will bring the bill to the floor of the house for a vote at all, and is his speakership at risk? >> the answer to the second question about the speakership is, no. this is a legislative issue, not a relationship issue. to your first point, i think the

statement is well written which is that we're going to take a look at it and bring it to the floor. we will consider it. now, whether or not we amend it and find something that can get more republican support remains to be seen. see what the house wants to pass with republican majority. but i take my hat off to the leadership of at least giving the senate bill a vote. it's something that the senate has not done for us in a long time. so i'm glad to see we're going to be taking it up again. the house does go to session at 12, we're meeting at 1, so no chance we would vote on it before 1:00. heather: okay. you could amend it, how much longer would that take, add in the amendments, change it, and then where do we go? >> it depends. my guess is there might be a couple of amendments we agree to as a party to take a look at. again, i don't know. i don't get the sense of where the rest of of the conference is. i sort of was watching your

coverage, i saw mr. chaffetz and mr. hensarling echo some of my statements. i've heard some democrats around the building say they'll like it, other democrats echoing mr. harkin saying they didn't care for it. so i think we're all over the map, and i think the best thing to do is read the bill this afternoon and take it up later on today. heather: congressman mick mulvaney, we appreciate you taking the time with us, and we'll let you get back to your work. >> thanks again, heather. rick: in other news today, we're following some brand new developments concerning the health of secretary of state hillary clinton. doctors say they're confident she'll make a full recovery from a blood clot between her brain and her skull. the condition brought on by a concussion that she suffered during a fainting spell at her home back in early december. chief intelligence correspondent catherine herridge is live in washington. when did these health problems start for the secretary? >> reporter: well, rick, for

nearly a month secretary clinton has been dealing with health problems which began, according to her staff, after being overseas. on fred, december 7th, mrs. clinton has a stomach virus. the following tuesday, a trip canceled sending a deputy in her place. on saturday, december 15th, her aides say mrs. clinton became dehydrated from the stomach virus or which led to a blackout causing the concussion, and then last weekend on sunday b aides confirming the discovery of this blood clot. clinton's aides have not said when the fall happened, where she was when it happened or whether she was alone when it happened. rick: a lot of lawmakers want to hear from secretary clinton. they want her to testify on the terror attack on our consulate in benghazi that claimed the lives of four or americans. what does this mean for a timetable on a possible date for

the secretary to testify? >> reporter: any day for clinton's testimony remains very fluid. the focus is clearly on mrs. clinton regaining her health. she was set to testify on december 20th, and it was to have been her first testimony. lawmakers telling fox they want a specific timeline on what actions mrs. clinton took, the interaction between the state department and the white house situation room that evening and how high up in the state department requests for funding and additional security reached and who turned them down. this mid december testimony was postponed until mid january, and here's the last on-camera comment we had from reporters before the holiday. >> i don't really have any yun date. as you mentioned, this was addressed including at this podium and yesterday during testimony, so we'll continue to work with the committees, but i don't have any, you know, specific announcements. >> reporter: before the congressional break, there was bipartisan sport for clinton's public testimony on benghazi.

before there could be any movement on confirming her successor, john kerry, but that was before news of the blood clot was announceed. it does seem they remain firm, they want mrs. clinton to testify before they will let john kerry's confirmation process go forward. rick: catherine herridge live in washington, thank you. >> reporter: you're welcome. heather: coming up, a show of force near one of the world's most important oil shipping lanes. disturbing developments out of iran. we'll have a live report. rick: and just two hours from now the house will convene, but will lawmakers take up the senate's tax hike deal? and if not, what does it mean for the rest of us? we'll take the pulse of the house, next. >> mark my words, you will raise tax rates, and you'll feel good because you went out there and got those rich people because you said you were. . i just served my mother-in-law your chicken noodle soup but she loved it so much... i told her it was homemade. everyone tells a little white lie now and then. but now she wants my recipe

[ clears his throat ] [ softly ] she's right behind me isn't she? [ male announcer ] progresso. you gotta taste this soup.

we don't let frequent heartburn come between us and what we love. so if you're one of them people who gets heartburn and then treats day afr day... block the acid with prilosec otc and don't get heartburn in the first place! [ male announcer ] e pill eachmorning. 24 hours. zero heartbur >> i can speak for my entire conference when i say we don't

think taxes should be going up on anyone, but we all knew that if we did nothing, they'd be going can up on everyone today. we weren't going to let that happen. >> senate minority leader mitch mcconnell early this morning on the tax hike agreement that he calls an imperfect solution but necessary. today we'll find out if his colleagues in the house agree with that assessment. bob cusack is managing editor of "the hill." happy new year, bob, good to see you. what's going to happen today? >> happy new year, rick. i think house republicans are going to huddle at 1 p.m., and then they're probably going to vote on this. and as long as speaker boehner gives it at least some tepid support, it's going to pass the house. there has been talk of possibly amending it, sending it pack to the senate. i just adopt think there are the votes for that. house democrats are widely supported of what passed the senate early this morning, but they're not going to support any effort to amend it, and any effort would need the votes from

house republicans. we saw that on boehner's plan b bill, they don't have the unity. ultimately, the house will approve this. rick: the plan b bill that, actually, never even got to a vote. >> right. rick: the speaker pulled it back. any chance that this doesn't go to a vote today? >> i think -- well, the markets don't open today, and that's the key thing. we heard that with you guys talking to congressman mulvaney. so they could vote late today, but i think they have to vote. since that t.a.r.p. vote in 2008, the wall street bailout, they've been very cognizant of the markets. they don't hold these votes when the market's open. it could be late tonight or in the afternoon, but i think the it's going to come to a vote. rick: we've heard about this hastert principle named for the former speaker who didn't bring a bill to a vote unless he had the majority of his majority party, the republicans in the house. >> right. rick: it seems like if this does come to a vote today, that that tradition anyway will be tossed out the window. >> can yeah.

boehner has never embraced that majority of the majority. he says, listen, i'll bring a bill to the floor. he's never said it has to have the majority of the majority. i think if boehner backs this bill, i think it possibly will get the majority of the majority. it'll be close. there's been a lot of defections on a lot of the fiscal bills from republicans, but boehner usually gets the majority of the majority. he's always had the majority of the majority. this is going to be a test, because if he does get that so-called majority, it's going to weaken him. i think he probably at some point will say, listen, i tried to pass plan b, you guys wouldn't pass it. we've got to take this or else, and we heard senator lindsey graham say earlier if you don't pass this, you're going to get a worse deal down the road. i think boehner's going to embrace it and say let's vote on it. rick: another long-held republican principle of not voting for tax hikes period might also go up in flames today. >> no, that's true.

you hear some republicans say it's past january 1st, and the big deal is spending cuts. we were talking about possibly $2 trillion in cuts a couple weeks ago, and now we're getting a very, very small amount. the republicans say, well, the cuts are going to come in 2013, but president obama's saying i'm not going to play that debt ceiling game, or i'm not going to negotiate cuts with the debt ceiling. republicans say, well, they are -- they're going to demand cuts, or they won't raids the debt ceiling -- raise the debt ceiling. this is the frustration among conservatives, that the cuts always come later, they don't come now. and that's why there are going to be a lot of no votes from house republicans. rick: i remember president bush's second term statement that he had collected political capital, and he intended to use it. on the president's side here, how much political capital has he spent on this deal right now? >> well, he certainly spent some. he's going to spend a lot on immigration reform. that's going to be a very

difficult fight. he also wants to move energy and gun control. i doubt he has the votes on any major gun control effort, but that's going to move very quickly early next year. so i think he spent some. the polls indicate he's in good standing now -- rick: right. >> but republicans say he's at the highest standing he will be probably for the rest of his term and, eventually, he'll become a lame duck. right now he's got some political capital left. rick: bob cusack, thanks very much. heather: new details about secretary of state clinton's medical condition. what the blood clot discovered near her brain could reveal about her overall health. rick: plus a defiant new move out of iran test firing a number of missiles near one of the most important passage ways for the world's oil supply. a live report straight ahead. hi. i'm henry winkler.

and i'm here to tell homeowners that are 62 and older about a great way to live a better retirement. it's called a reverse mortgage. [ male announcer ] call right now to receive your free dvd and booklet with no obligation. it answers questions like how a reverse mortgage works, how much you qualify for, the ways to receive your money, and more. plus, when you call now, you'll get this magnifier with l.e.d. light absolutely free. when you call the experts at one reverse mortgage today, you'll learn the benefits of a government-insured reverse mortgage. it will eliminate your monthly mortgage payments and give you tax-free cash from the equity in your home.

and here's the best part -- you still own your home. take control of your retirement today. ♪ ♪

rick: did you know that 2012 was the most expensive year of all time at the pump for all of us? according to aaa, the average price of gas was higher in 2012 than in any ore year on record -- other year on record with the national average climbing to $3.60, that is ten cents higher than a year before. what about 2013? aaa says that all depends on the fiscal cliff deal, but that increased domestic production of crude oile sting. heather: we are following some disturbing developments out of iran this morning. the country's navy staging a defiant five-day show of strength near the strategic strait of hormuz. now, that's a vital passageway for one-fifth of the world's oil supply, reportedly test firing a range of weapons including torpedoes and missiles. leland vittert is following this story. what's the purpose of the drills?

>> reporter: heather, you were talking a little bit earlier about gas prices, something for real happens in the straits of hormuz, gas prices will go through the roof as oil prices spike. iran, these war games are largely pr exercises, so you might say here we go again. couple of highlights again, test fired an anti-ship missile, conceivably, that would be used against something like an american aircraft carrier or other kind of battleship out there in the straits of hormuz. second of all, they laid a number of anti-ship mines, and that's probably the trump card iran has. if they mine the straits of hormuz, it would severely limit oil capacity until the u.s. could come and clear it out. from a military standpoint, they're saying this is how iran would repel an invasion, largely it's how they would respond conceivably if their military facilities, if their nuclear facilities were attacked. military analysts will tell you, though, that much of what you see from iran in these war games

is smoke and mirrors. they horribly overestimate their military capacity there to actually do anything beyond what the u.s. navy could clean up in very short order. heather? heather: so how do these drills influence the debate over iran's nuclear program? >> reporter: that's what this all comes down to. the israeli prime minister back in september drew that famous red line on the diagram of a bomb, and he said this is where we're going to stop iran sometime before this. that's coming up in about mid june. you've got three options; an israeli strike, an american strike or some kind of deal to be cut. if the israelis strike, it's going to have to be sooner than the american, because israel doesn't have the ability to penetrate those bunkers that the iranians have buried their nuclear program in. for israel they think if there's going to be a deal made, iran has to feel real pressure, the credible threat of some kind of strike coming either from the united states or from israel. so over the next couple of weeks

and months you're going to see a lot of saber rattling out of israel about a possible strike on iran. and also keep this inind, heather, israeli elections are just three weeks away, and iran is always a good topic to talk about leading up to those especially for prime minister netanyahu who has really made the iranian issue one of his signature issues. heather: let's hope we with end up with option three. thank you so much, leland vittert, reporting live from jerusalem. rick: a new report coming out that sheds new light on what may have led to the shifting story told by members of the obama administration in the days following the consulate attack. former u.s. ambassador to the u.n. john bolton weighs in live. that's coming up next. heather: plus, we're waiting on a crucial, rare new new year's y session in the house of representatives after the farther passed a last minute bill possibly bringing the nation back from the fiscal cliff. we've got the latest details in a live report in three minutes.

>> you've got enough envy whipped up in the country, and you're going to get 'em, you're going to stick it to those rich people.

rick: fox news alert, and now that the senate has passed a last minute, overnight deal, the focus turns to the house of representatives when lawmakers return to work at noon eastern time. president obama is encouraging them to, quote, pass it without

delay, but this is not a done deal, not by any stretch of the imagination. the senate bill would raise taxes for individuals making more than $400,000 a year, $450,000 for couples. those are levels that are higher than what president obama had called for during the presidential campaign and during the heated negotiations. senior white house foreign affairs correspondent wendell goler is live with the latest. does the white house have a sense of what might happen in the house? >> reporter: vice president biden wouldn't predict how the house would vote, in fact, the president and his aides are waiting to see if the house even picks up the vote today. the senate deal, basically, buys the nation a two month extension of the so-called fiscal cliff, but it doesn't contain any spending cuts, and that's a going to make it a tough sell to house republicans. yesterday the president aimed to put some pressure on them in an appearance that showcased middle class americans who'd be hit by a tax hike. mr. obama said he'd have

preferred a bigger deal that included spending cuts. >> a grand bargain, whatever you want to call it, that solves our deficit problems in a balanced and responsible way, that doesn't just deal with the taxes, but deals with the spending in a balanced way so that we can put all this behind us and just focusing on growing our economy. >> reporter: the president said with this conference, by which he meant this partisan conference, that's too much to hope for. early this morning after the senate vote he released a statement that read in part, this agreement is the right thing to do for our country, and the house should pass it without delay. we'll wait and see if that actually happens today, rick. rick: okay. so if republicans compromised on spending cuts and tax hikes for the wealthiest, what did the president give up? >> reporter: well, his compromise was in raising the income level protected from tax hikes from 250 to $450,000 a year for families, and more importantly, making the tax cuts permanent. that is something president bush

wasn't able to do back in the early '90s. all but five republicans and three democrats approved the measure this morning. the deal also raises the value of estates protected from the death tax, and it permanently indexes the alternative minimum tax for inflation but with no spending cuts, the deal doesn't solve the fiscal cliff crisis, it just delays it a couple of months, and then republicans may have a lot more leverage because the president need them to extend the nation's debt ceiling. rick: wendell goler, thanks very much. kentucky senator rand paul giving a passionate speech on the floor of the senate early this morning opposing passage of this fiscal cliff deal and accusing democrats of playing the class warfare card before joining seven of his colleagues to vote against the measure. >> mark my words, you will raise tax rates, and you will feel good because you went after and you got those rich people because you said you were, you campaigned against rich people,

and you got enough envy whipped up in the country, and you're gonna get 'em, you're gonna stick it to those rich people. but guess what? you may not get any more revenue or economic growth. but you can say i stuck it to the rich people. that's what we're talking about. rick: senator paul also saying that the bill may ultimately hurt middle class workers, and coming up in the next hour, senior economic writer steven moore will join us with a look at who's ultimately going to get hit the hardst by the new senate deal and what it means for the nation's economy. ♪ heather: well, new insight on what may have led to the shifting narrative in the obama administration's early accounts of that deadly terror attack on our consulate in benghazi that left four americans dead including ambassador chris stephens. and now the senate homeland security and governmental affairs committee says that the fbi, the cia and other intelligence officials contributed to the confusion.

joining me now to discuss this, ambassador john bolton, fox news contributor and former u.s. ambassador to the u.n. thank you for joining us and happy new year. >> happy new year. heather: so i have this report here, roughly 30 pages long. i've read through it a couple of times, actually, now. it's called flashing red. in part because of something that a high-level administrator said that libya and benghazi were flashing red around the time of the attack. it is clear from this report that, you know, there were simply signs everywhere; increasing threats, lack of protection, lack of communication, vulnerability around the compound. were you surprised by anything that you read in this report? >> no, i think the report -- which is bipartisan -- an important step forward. unfortunately, there's still a lot of questions left unanswered. but as you indicate, it shows that the information was there for washington, for the state department in particular to have

responded to embassy tripoli's repeated requests for enhanced security. what the report doesn't get to in part because of lack of administration cooperation, not turning over documents and the like, is it really can't address the mega question why didn't the administration see the flashing red light and act on it? i think that's what many members of congress are still determined to find the answer to. heather: yeah. i'm going to talk a little bit more about that cooperation in a moment. but the report also says, and it is a quote from it, that it was a grievous mistake to not close the facility or even temporarily shut it down. what should have been done to further protect the compound? should it have been shut down? >> well, you know, in a cable that was leaked to fox news that catherine herridge reported on some time ago, the consulate officials in benghazi met on august the 15th, three weeks before the attack, and said we can't defend 24 compound. so -- defend this compound. it was known in libya, it was

reported back to washington, and no action was taken not to increase the defenses or as may have been more advisable, to close it down. and i don't think this report, unfortunately, is able to answer the question how could they have missed that cable, how could they have not seen the lack of possibility of defending the compound with the resources they had? so, again, i think it underlines -- well, it's a step forward. it underlines there's still a lot we don't know about what washington's thinking was. heather: there were other things that we did know in terms of publicly-reported incidents in the area and those unreported during this same time frame. i spoke to general jack keane about this yesterday. there are many listed in this report including four specifically. we reported on them right here on fox news right after the attack. those happening between may 22nd to june 18th. but still nothing was done. in fact, we heard people come forward from the administration after the attack and claiming a lack of actionable excellence. i remember that -- intelligence.

i remember that term was used. why does it take this report to determine this? and this is another quote from the report: the absence of specific intelligence about an immeant attack -- imminent attack should not have prevented the department of state from taking more effective steps. it seems like that would be a given. >> well, it should be. but, you know, defense says we didn't hear of an attack that was pending within the next 24 hours. that shouldn't be standard. if you look at the deteriorating security environment in libya and in the middle east more generally, that's the flashing red signal that more should have been done. i mean, my own view is the administration was determined to make the argument that things were going great in libya, that the aftermath of the overthrow of gadhafi was successful, that there was no threat of terrorism and, therefore, if you buy that analysis, then you don't need enhanced security. that's what the tragedy of september 11th disproves, the administration's mindset, its

world view was badly distorted, and four people paid the price with their lives, tragically. heather: back to the communication issue, it talks about the communication specifically between the department of defense and the department of state. and it proved deadly. the dod attempted to mobilize quickly but didn't have assets or personnel close enough to actually reach benghazi in a timely manner. we know that now. but what is to keep the lack of communication from happening again? >> well, i think that's a serious or question, and i think there's more to learn there as well. but i think there's a predicate question because you can't expect our military to be in a position to defend every diplomatic facility everywhere in the world. the way to handle the threats is to be prepared in advance and either have adequate security from the host government which was, obviously, completely lacking in this place, or beef up our security first to deter the attack before it happens, or as the report recommends in the

case of benghazi, close the facility. those are the decisions that need to be made at the top levels in washington. and here's where this mistaken world view comes into play. if you think everything's fine in libya, closing the facility in benghazi would be an admission that things are not so fine, and the administration couldn't bring itself to do that. were these decisions made at very low levels? so far that's all we know. but i don't think the responsibility at the top levels can be dismissed that easily. libya was a signature foreign policy achievement in the view of the obama administration, and to lose sight to what was happening in libya after the overthrow of gadhafi, in my view, is inexcusable. heather: ambassador john bolton, thank you so much for joining us on this new year's day. we appreciate your insight as always. >> thanks again for having me. rick: fox news alert, and fox has learned that the vice president will be heading to the capitol later on today. he'll be attending the democratic caucus meeting with

his fellow democrats where he shouldn't have to do a whole lot of arm twisting there. but a whole different story on the other side of the aisle. republicans in the house will be meeting at 1 p.m. eastern time to figure out what they want to do given the fact that the senate last night passed their version of the fiscal cliff deal. so, again, a lot of things going on on capitol hill today. it looks a little sleepy there in this picture that we're showing you of the dome, but make no mistake, a lot of activity, and we've got it covered for you right here on fox. heather: no sleep for a lot of people last night. those that weren't working, they were in cities all across the country ringing in the new year in grand style. there you go. if you missed it, you can see it right there. here in new york city more than a million people from every corner of the globe, they gathered in times square to watch that massive ball drop. did you see it, rick? rick: we watched it, sure. heather: did you? i was sound asleep.

marking the 106th year of the ball dropping and then over in atlanta more than 100,000 people gathering for live entertainment and fireworks and to watch the 800-pound giant peach descend at the stroke of midnight. and over to seattle, that's where thousands turned out for a beautiful fireworks display. of course, that, the iconic needle there. and the eight-minute light show launching from the legs of the -- to the top of the 600-foot tall tower all synchronized to festive music. happy new year. rick: happy new year, everybody. well, a new year full of new rules, some of the outrageous laws that go into effect today. heather: plus, secretary clinton's recent health scare, what it could mean for her future.

rick: returning now to one of our top stories. doctors treating the secretary of state, hillary clinton, expecting her to make a, quote, full recovery from a blood clot found between her blaine -- her brain and her skull. so just how serious is this, and what could it mean for the secretary's future? dr. bob is chairman of the department of medicine at newark beth israel medical center. when you and i spoke yesterday, doc, we didn't know that this blood clot was, in fact, in her head. now that we do know the exact location of it, um, how serious is that in.

>> well, rick, it's pretty serious. from my standpoint, there are many, many questions that now have to be answered. this is a clot that's occurring in a vein that is, basically, a vein that drains blood from the center of the head. now, it is between the skull and the brain, so it's a form of a stroke, but it's not within the brain substance itself. the question is, did senator clinton or, actually, secretary clinton, did she pass out because of the clot, or did the clot happen as a result of the trauma? this condition, which is very unusual, occurs principally in women. it's about three times more common in women than men. and in patients over the age of 65, about a third of them have no known cause. and so the causes of this condition which we would call a pro-coagulant state meaning the blood is thicker or tends to

clot more rapidly, conditions are malignancy, severe infections, obviously, trauma to the head, and then sometimes a genetic or acquired condition can produce this. but this is unusual. we would see ability five of -- about five of these a year in our large hospital, so i think we're dealing with something quite strange. rick: and this is not the first time that the secretary has had a blood clot, so i guess doctors might be wondering if there could be some underlying condition here. >> yes, that's true n. 1998, i believe -- i mentioned yesterday she rides airplanes a lot, and it's very dangerous to people who do have a tendency to clot. she had this deep vein thrombosis of a leg which is not rare. this is pretty common. but to have a transverse sinus thrombosis or clot is unusual. and i actually wonder whether this flu-like illnesses might have occurred as a result of this clot, although i've been

told other people in her party suffered -- rick: is in the kind of condition -- is in the kind of condition that could in any way cause limitations for secretary clinton? >> well, i hate to speculate in that vein because, really, what we're dealing with here is a very transient condition. but if she had a pro-coagulant or what i explain to patients as a sticky blood condition, this would have consequences for her going forward. and i'm sure her doctors are actively investigating this possibility. rick: chairman of the department of medicine at beth israel in newark. good to see you. >> happy new year to you. heather: coming up, one tech-savvy parent calling on her son to step up in the new year with an offer he can't refuse. his new cell phone and the contract with it, that's up next. >> it's just like her to put together, like, all these rules, but she's not being one of those strict parents.

she's, like, preventing me from the dangers of getting myself into too much trouble that i couldn't handle.

rick: investigators in oregon saying it could take months for them to determine the cause of this weekend's deadly tour bus crash there. nine people were killed, dozens more injured when the bus careened down a steep hillside and plunged into an embankment from an icy highway. >> people screamed and yelled. some mothers screamed to find their son or daughter. rick: police say one of the things that they're looking into is how fast the driver may have been going before he lost control. they also say that the snow and ice-covered roads may be to

blame. ♪ heather: well, while the rest of us might be keeping an eye on the new year, one 13-year-old boy is still trying to wrap his head around a christmas gift that was given to him by his mother but with some very long strings attached. crystal haines from our wfxt affiliate in boston has the story. >> reporter: merry christmas, you are now the proud owner of an iphone. >> i was probably the last one of my friends to get a phone, and tear kind of like, yeah, you got a phone. >> he was, basically, going to have the world at his fingertips without any constant supervision which is part of growing up, and i was totally comfortable with that, but i felt like i needed to get it all on paper. >> reporter: that's exactly what jenelle hoffman did. she gave her 13-year-old greg a simple choice: adhere no this 18-point contract and get an iphone. >> it's just like her to put

together all these rules. she's, like, preventing me from dangers of getting myself into too much trouble that i couldn't handle. >> reporter: but the decision itself was not so simple for the mom of five. greg is her oldest. >> we're the first group of parents that are ever parenting this kind of technology, and there are no guidelines. so we're relying on our common sense, on our instincts, and so i kind of just compiled things i always want him to know but also some rules and some structure around such a large gift. >> reporter: the rules could be considered a gift themselves. some are serious like don't use it to lie, fool or deceive another human being or no porn. greg has to give his parents the phone at 7:30 on school nights, but some are just plain life lessons like listen to the birds. wonder without googling. >> there was a part of me that was really trying to preserve his boyhood in that final rule about being eyes up, you know, wonder, stare out a window. i really mean that without the i phone, you know?

just don't always be plugged in. heather: crystal haines from boston, thank you. rick: i'd like that mom to e-mail me those rules. my kids are a little too o young, but it's coming soon, and i think that a lot of those ideas make a lot of sense. heather: i think that's a great idea and a great mom, definitely. rick: absolutely. all right. breaking developments out of washington this new year's day. just a couple of hours from now the house will meet, they'll vote on the fiscal cliff deal perhaps that was passed in the senate in the predawn hours this morning. we'll have the very latest from washington, d.c., that's coming up next. and then there's this -- >> put your damn seat belt on. pull it over! heather: yeah. remember that guy? the guy trying to make a citizen's arrest of a cop? ahead, the best caught-on-tape moments of 2012.

heather: fiscal cliff. fallout. house speaker john boehner and majority leader eric cantor have just arrived at capitol hill where all eyes are on the house. as we await act on the bill that passed by the senate early this morning and averts across the board tax hikes and massive spending cuts set to kick in today. brand new hour of "america's newsroom." thank you for joining us. i'm heather childers in for martha maccallum. rick: i'm rick folbaum in

for jon. happy new year. >> you will stick it to the rich people. but guess what? you may not get anymore revenue and anymore economic growth but you can say i stuck it to the rich people. >> i'm dis.ed we did not get a grand bargain we tried to do so long but we tried. passing this agreement does not mean negotiations halt, far from it. we can all agree there is more work to be done. heather: chief congressional correspondent mike emanuel is live on capitol hill for us. mike, any sense of the next steps on the house side of the capitol? >> reporter: heather, you mentioned speaker of the house john boehner and majority leader eric cantor are on the hill on the way in. no decision has been made whether they take up this senate-passed bill. we know lawmakers want toance cha to review what

their senate colleagues have done. we got this take from a south carolina republican a short time ago. >> they i haven't finished reading it yet. if there are no spending cuts reading it will be a problem for me. the delay of the sequester is a problem. >> reporter: let me translate a little hill speak, congressional language. the sequester were the automatic cuts as part of the 2011 debt deal to defense spending and domestic spending. what he is saying there essentially by buying down two months, delaying the sequester, these cuts, that is not really doing anything. it is not cutting spending. we heard that perspective from some conservatives in the house this morning that they don't love the deal because it doesn't cut spending. heather? heather: so, to say the very least nail-biting negotiations going on. does anybody love this deal? >> reporter: well, it sound like there is a lot of people like. that is why it passed so overwhelmingly in the united states senate, 89 to 8.

vice president biden came up here last night to close the deal with his senate democratic colleagues. we heard from some house democratic folks, they believe the vice president will come up to try to convince house democrats to support this vote in case some conservatives back away from it. they need democrats to support it in the house. bottom line, here was the key republican negotiator's final pitch for this bill. >> it took an imperfect solution to prevent our constituents from a very real financial pain. but in my view it was worth the effort. as i said this shouldn't be the model for how we do things around here but i think we can say we have done some good for the country. we've done some good for the country. we've taken care of the revenue side of this debate. >> reporter: and so mcconnell's point is in the new year the republicans can fight about out of control spending in washington.

but the bottom line is they were up against the wall. they were up against the fiscal cliff. and the senate has acted to avoid a massive tax increase for every american. now it is up to the house, heather? heather: thank you very much. mike emanuel reporting live for us. i have a feeling we'll check back in with you once or twice today. >> reporter: thank you. sure. rick: just hours before the deal to avote the fiscal cliff, another financial crisis emerged right? treasury secretary tim geithner telling congress that the u.s. just reached its $16.4 trillion borrowing limit. he says the government is now employing, quote, extraordinary measures in order to avoid default, no word how lawmakers will resolve huge differences raising debt limit, the debt ceiling but it could be just a matter of weeks before the government defaults. heather: the supreme court's chief justice weighing in on the country's physical problems. saying the judicial branch gets a minuscule fraction of the nation's trillion dollar budget. it has already done its part

when it comes to cost cutting. he is calling on the white house and congress to give enough funding to insure the federal judiciary can do its job. saying this. a significant and prolonged short fall in judicial funding would inevitably result in the delay or denial of justice for the people the courts serve. i therefore encourage the president and congress to be especially attentive to the needs of the judicial branch and provide the resources necessary for its operations. rick: well, about a million people filling times square last night to bring in 2013 with a bang. >> five, four, three, two, one, happy new year. rick: that was the scene and with this new year comes a whole slew of new laws, some controversial. others some people would find just plain silly. all of them taking effect all over the country today

and shannon bream is live in washington this morning to help make sense of them all. good morning, shannon. happy new year. >> reporter: do to you, as rick. about these laws they meant something to a group of lawmakers to get passed and onto the books. in kentucky it is real legal to release ferrell or wild hogs into the wild. in florida swamp buggy is no longer legally considered a motor vehicle. there are a number of employment related measures including this. in oregon it is now illegal for employers to advertise a job opening if they won't consider applicants unemployed. in illinois and california starting today it is illegal for emproers to hand over the passwords to social media accounts like facebook and twitter that goes for applicants and current employees. other states already enacted similar laws. in all more than 29,000 laws were passed by state legislatures all across the country in 2012 and of course it has been a very busy year at the federal level as well.

many new regulations stemming from laws over the past couple of years will kick in today, including an hhs mandate that employers who provide health insurance coverage must make sure it includes free access to birth control methods, considered some of them controversialer. here is exemption for those defined as religious many employers in the mandate but there are 40 cases pending by employers saying that is what they are and the obama administration is refusing to recognize that. hobby lobby is believed to be the largest employer challenging that mandate. days ago it was denied an emergency injunction against the mandate by supreme court justice sonia sotomayor. founder david green said quote we can't abandon our religious beliefs to comply with the mandate. the company is potentially facing fines of $1.3 million a day, starting a today. rick. rick: shannon bream live for us in d.c. shannon thank you. heather: new information on the condition of secretary of state hillary clinton who

is hospitalized in new york. that is where doctors are using blood thinners to treat a blood clot found near her brain. chief intelligence correspondent catherine herridge joining us live from washington. so what does this mean for her testimony on the benghazi terrorist attack? >> reporter: well this new senate report follows white house, specifically president obama for inconsistent statements whether the benghazi assault was a terrorist attack. it faults the pentagon for not having effective evacuation plan in place to rescue two dozen americans including the bam does door and faults the state department failure to act on clear warnings that the u.s. was a target in the benghazi. he was asked about secretary clinton at monday's news conference. >> i just want to say how much secretary clinton is in our prayers this morning and i hope she recovers rapidly from this health problem. she has not only been a great secretary of state and has been our personal friend and has been so long in my

case. secretary clinton made it clear she will testify and that you think that's a good idea. i also appreciate her response to what happened in benghazi. >> reporter: before the holiday break there was bipartisan support for clinton's public testimony on the benghazi attack. before this could be any movement on confirming her successor as secretary of state. senator john kerry. that was before news of the clot was announced. it is not clear what the timetable will be now, heather. heather: what about the timetable of her health problems? when did her health problems begin? >> reporter: well for nearly a month secretary clinton has been dealing with health problems which began according to her staff after being overseas. on friday, december 7th, mrs. clinton returned from a five-day trip with a stomach virus that affected staff traveling with her. the following tuesday, december 11th the state department canceled a key trip to the morocco in the middle east and sending one of her deputies in her place. on saturday, december 15th

in a rare weekend announcement she came weak from stomach virus leading to a fall that caused a concussion. her aides have not said exactly when the fall happened except that it was before december 15th where she was when it happened, or whether she was in fact alone when it happened. heather? heather: catherine herridge reporting for us. thank you so much. >> reporter: you're welcome. rick: coming up new warnings emerging from iran as the country's military flexes its muscle near a crucial waterway. we'll have the latest on iran's war games in a live report from the middle east. heather: plus, this is one way to get ahead of traffic, maybe, if you want to wreck. more on these knew year's daredevil antics that you won't want to miss coming up. rick: the senate reaching a deal overnight to avert the fiscal cliff. so who are the winners and who are the losers? a fair and balanced debate on that. >> it's not something that any of us would say, oh, i love it. i don't love it, but i think

it is a very good job of negotiating where there are some wins and some losses. new prilosec otc wildberry is the same frequent heartburn treatment as plosec otc. now with a fancy coating that gives you a burst of wildberry flavor. now why make a flavored heartburn pill? because this is america. and we don't just make things you want, we make things you didn't even know you wanted. like a spoon fork. spray cheese. and jeans made out of sweatpants. so grab yourself some new prilosec otc wildberry. [ male announcer one pill each morning. 2hours. zero heartburn. satisfaion guaranteed or your money back.

heather: welcome back and happy new year. thousands of people welcoming in 2013 in key west, florida, with the drop of a shoe. take a look at this. have you heard about this tradition? the annual drag queen drop, yeah, it is an off-beat, could say to ring in the new year instead aftra additional new year's ball in times square. a female impersonator is lowered to the crowd below, seating in a ruby slipper. rick: like her hat. heather: at the stroke of midnight. nice bright green color there. i might go for that tomorrow. rick: good. back to the fiscal cliff and what it means for the economy.

speaking of the other shoe dropping. early this morning the senate passing a bill. what is in it and what happens when it hits the house later today? joining us stephen moore, senior writer for "wall street journal" happy new year. good to see you. >> you too, rick. rick: what do you think?. >> you ask a question what is in the bill. a lot of members don't know. rick: they're probably reing it right now. >> i was up to the wee hours of the morning trying to read the 150 page bill. amazing little items. tax give aways for nascar, for the wind industry, for biodiesel, for movie producers. those are small items. but the big items are the taxes that will affect 100 million americans. and you know, there were a lot of rate changes everything from the capital gains rate to the estate tax, to the dividend tax and of course personal income, tax rates. rick: was there, anything, steve, that jumped out at you specifically when you were reading it this morning you thought, gee, i can't believe the be republicans

went for that, or i can't believe the democrats agreed to do that? >> a couple things. one is, you heard earlier from the sound bites you played from some of the republicans that they are still extremely frustrated, rick, that there are no spending cuts to speak of in this bill. it's a $100 billion tax increase with almost no spending cuts. now what that means is, that we're going to be having to address spending down the aisle. other items i found interesting was, let's talk about for a minute the estate tax, rick. nobody knew what would happen with the estate tax. 10 years ago we passed a bill that phase the out the estate tax. this bill basically brings it back with 40% tax rate but for those out there who have, you know, seniors and their family the exemption now level would be $5 million at the time of death. rick: the amt, alternative minimum tax, that really never been right because it affects more and more americans each and every year. >> right. rick: not americans who were

intended to be targeted when this thing was put in place years ago but there is a permanent patch now to fix that. that has to be good news for a lot of folks? >> that is very good news. this is a tax if we hadn't fixed this, rick, we would have been talking about 26, 27 -- 27 million americans paying the alternative minimum tax. we have this debate every 15 years. rick: every year. >> we have to extend the alternative tax to make sure not to hit middle class families. we have permanent fix, indexes for inflation adjustments. i view that as very good news for the middle class. rick: the word sequester which i hope to retire once and for all. i never want to use that word, not on tv anywhere when this is all said and done, that has been pushed now for two months assuming this gets passed in the house of representatives. >> yeah. rick: i guess until we know what the spending cuts are, where they're going to be it is awfully hard to know what this is going to mean for our economy over all, isn't

it? >> well, it is. this was very interesting that the democrats are very worried about this sequester, i used word, rick, by the way a lot of people feel like congress sequestered their new year's eve last night. rick: yeah. >> i think this will be the big battle ahead. if anybody thinks this is the end of the debate and this resolves our deficit crisis no way. this is just act one. we're going to see major debates in the next few months, rick, as you know, on the issue what we do about the sequester. five or six weeks irk the debt ceiling. >> the debt ceiling bill. this is just the beginning of the debate. it is not the end. rick: you and i talk for years, steve about small businesses and the impact these bills have on folks who employ, the most americans in this country, small business owners. based on your reading of this bill, what's the impact on them? >> it is lousy. i'm glad you brought this point up.

we've been having the debate whose taxes should be going up and so on. let's not forget the overall impact of this bill is very negative for the economy. means higher capital-gains taxes higher dividend taxes. higher taxes on small businesses the some of my liberal friends would say, that is only people that make over $450,000. rick, as you know, two out of three of those people in the high income category are small business owners. the overall impact is anti-business and anti-growth. the by the way only way we get the deficit down is get the economy growing again. i think congress and the white house lost sight of that. rick: for conservatives in the house of representatives sitting reading this bill right now and trying to figure out what they're going to do, as a conservative economist what would you tell them to do? >> you know, i think that, the republicans were in a very bad position to begin with, because as you know, rick, if we had not acted, if the senate had not acted last night and the house doesn't act today to pass this bill, then taxes go up

on 100 million americans. i guess my view this is pretty lousy bill but may be the kind of least bad outcome that we could have hoped for. i mean i think it would have been a big mistake to go over this cliff and let taxes go up on 100 million americans. i think that would have been devastating for the economy. rick: we'll see what happens. i know you will too. steve moore from "the wall street journal" always good to talk to you. >> maybe next time we talked i read the whole bill. rick: i will work on it myself. see you again soon. >> take care. heather: 2012, a year of some incredible moments caught on tape. the must-see video and the stories that made headlines. rick: also, new year's eve celebration ending in tragedy, dozens of people killed, hundreds injured. we'll tell you where it happened coming up next. progress-oh! -oh! -oh! oh! oh! ♪ wh do you know? oh! ♪ bacon?

-oh! -oh! oh! [ female announcer ] with 40 delicious progresso soups at 100 calories or less, there are plenty of reasons people are saying "progress-oh!" share your story for a chance to win a progress-oh! makeover in hollywood. go to facebook.com/progresso to enter. aww man. [ male announcer ] returns are easy with free pickup from the u.s. postal service. we'll even drop off boxes if you need them. visit usps.com pay, print, and have it picked up for free. any time of year. ♪ nice sweater. thank you. ♪

rick: thanks for being with us this new year's day. let's take a look at some of the international stories making news today. gunmen killing five female teachers and two other people in northwest pakistan. many militants in the conservative province where the attack took place oppose education for women and have targeted them in the past. in venezuela a somber scene as residents pray for the president there, hugo chavez. the leader is taking a turn for the worse after his latest cancer surgery. along the ivory coast in africa, 60 people were crushed to death in a new year's eve stadium stampede after a fireworks display. nearly 200 more were injured. heather: iran's military issuing warnings to foreign planes and warships as the country conducts five games of war games near the strategically important strait of hormuz where 1/5 of the world's oil passes

through this key waterway. leland vittert is live this morning in our middle east newsroom with the very latest. leland? >> reporter: heather, these warnings were likely to either u.s. or western allies plane, ships, reconnaissance aircraft those kind of things spying on these war games. you might say here we go again. for iran war games are exercises in pr and this may be the opening salvo as iran prepares for the nuclear program to begin on the center stage of the world debate over what to do about iran's nuclear program. militarily speaking these war games only involved two things all that significant. iran navy was talking about what would happen in practicing, what would happen if there was potential invasion. they launched some antiship missiles. conceivably used against u.s. aircraft carriers and also talked about mining the strait of hormuz that could conceivably shut down the flow of oil in the critical area between oman and u.a.e.,

iran, that strait of waterway so small conceivably the mines in iran could shut down for a while from a true military standpoint though, this looks like a little bit of smoke and mirrors because the iranian military threat just knit that significant. they don't have the ability to really project power. in the greater context though we're approaching the israeli prime minister's red line. you remember in benjamin netanyahu talked about drawing a red line from iran's nuclear program. most of experts put the red line in june. you have three options going forward then. an american strike, an israeli strike or some kind of a deal. israel would have to strike much sooner because of the americans because of their limited long range bombing capability. for a deal to happen the israelis feel they need to have a serious threat of a strike on the table. iranians need to feel threatened. that is what we're seeing here, sabre-rattling between iran right now and soon we'll see israel sabre-rattling increasing,

for no other reason, heather, in the next three weeks the i israelies go to the poll for their elections and iran is good one for rallying support politically here in israel. back to you. heather: leland vittert live in our jerusalem bureau. thank you. rick: giving a whole new meaning to the term crash course. guys driving wrecked cars over rows of other wrecked cars. you won't believe who comes out the winner. heather: fun stuff, not the cars. not enough snow time and the impact it is having, the impact it is having on one winter wonderland. we're live at the fox weather center. rick: we're live on capitol toll hill with a look at the winners and losers on the fiscal cliff fight that has not been settled yet. a fair and balance debate ahead. >> this imperfect agreement, 99% of the my constituents will not be hit by those hikes. so it took an imperfect solution to prevent our constituents from a very

real financial pain. but in my view it was worth the effort. eat good fats. avoid bad. don't go over 2000... 1200 calories a day. carbs are bad. carbs are good. the story keeps changing. so i'm not listening... to anyone but myself. i know better nutrition when i see it: great grains. great grains cereal starts whole and stays whole. see the seam? more processed flakes look nothing like naturalrains. you can't argue with nutrition you can see. great grains. search great grains and see for yourself. for multi grain flakes tt are anxcellent source of fiber try great grains banana nut crunch and cranberry almond crunch.

rick: well as we wait for the house to act or not on the fiscal cliff deal worked out in the senate, we're now just minutes away from vice president joe biden who will meet with house democratic caucus members on the hill. the vice president hammering out that deal with the republican minority leader

in the senate, mitch mcconnell. the deal passing in the senate in the wee early hours of this morning. wendell goler is live with that story. so, wendell, what is the white house reaction to the senate vote? >> reporter: rick, the folks here are gratified with the overwhelmingly bipartisan support the deal got in the senate. president obama released a statement in the early morning hours that read in part quote, while neither democrats or republicans got everything they wanted this agreement is the right thing to do for our country and the house should pass it without delay. vice president biden as you say is meeting with house democrats shortly after noon to enlist their support but last night he wouldn't bet which way house republicans will go. >> surely shouldn't predict how the house is going to vote but i feel, very, very good, happy new year and i will see you all maybe tomorrow. >> reporter: house republicans will caucus about 1:00 this afternoon to decide whether to take a vote after studying the bill. the fact that all but five

senate republicans supported it should give house republicans some cover. rick? rick: wendell, we know the president returned early from hawaii, his family's christmas vacation in order to be a part of these negotiations at least to oversee the process. if a deal is reached and the house votes to approve it, does he get to take some time off? >> reporter: i think one of the reasons the president's aides would like the house to take up the bill today, that could allow mr. obama to return to hawaii where you point out his family has been since before christmas. mr. obama left hawaii late the night after christmas of the he has been here ever since, even though it was vice president biden who eventually worked out the deal with senate republican leader mitch mcconnell. aides haven't announced whether the president will return, but if he did he could get a couple more days with his wife and daughters and a couple more rounds of golf. the president can sign the legislation in hawaii. that is not the issue but the appearance might not be good if he returns to hawaii before the matter is resolved. the spending fight begins

anew soon after his inauguration when he has to ask congress to extend the nation's debt ceiling, rick. rick: it never ends. wendell goler live in front of the white house. wendell, thanks. heather: and more now on the fallout from the fiscal cliff deal as we take a look at the major players on both side of the aisle and figure out the winners and the losers in this big fight. let's get a fair and balanced analysis with richard goodstein, democratic politicalcut ant, former advise sore to secretary of state clinton during her presidential run. tony sayegh former aide to vice-presidential nominee jack kemp and president of take radio news service. we shouldn't really call this a fiscal cliff deal. this is just the senate's bill. the senate vote 89-8 in favor the bill. it extends decade old tax cuts on income up to 400,000 for individuals, 450,000 for couples. cuts only 15 billion in

spending while increasing tax revenues by $620 billion. that is a 41-1 ratio of tax increases to spending cuts. so who are the winners and losers? we'll play a little game. i will toss out some names to you, you tell me winner or loser. we'll go down the list. richard, start with you, president obama, john boehner, winner or loser? >> i think both of them are winners for different reasons. the president won. obviously showed winning an election and staying on message is a winning strategy. he got republicans to budge on this decades long notion somehow or other lifting tax rates was going to be ruin news for the economy. i think we'll see that it's not. he got a lot of other provisions clean energy, tuition credits, senator for low income people. unemployment benefits extended that were on the line. i think john boehner is actually a winner too and here's why. he was not forced at end of

the day to make his members walk the plank because the vote is in 2013. and not 2012. the, you know, the grow very norquist pledge could be observed. having their members vote to reduce rates. you heard senator mcconnell talk about for 98% of the people. that was something frankly not crystal clear even as a week ago whether boehner could make that stick. so i think he gets a good outcome here and kind of keeps his people in line. heather: we have to see what happens today just about 30 minutes from now when they go back to the house. tony, what do you think, president obama and john boehner, winner or loser. >> rich is very magnanimous calling them both winners. boehner gets incomplete. the heavy lift will be really today. the caucus on republican side in the house is very conflicted over this we all understand we don't want tax rates to go up on everybody. but at the same time, as you mentioned, heather, there is no deficit reduction in a package supposed to be all about reducing our debt and

deficit. this was borne out of the debt crisis negotiation a year and a half ago. but i would say the president did win politically. he accomplished something i think we have never really seen by a modern american president which he has gotten this class warfare narative, tax the rich and we'll solve all our problems to become something very acceptable among a lot of americans and that put the republicans in congress in a precarious situation. even though we know there is absolutely no economic benefit by way of job creation, economic growth or even deficit reduction to tax the rich, the president accomplished and satisfied his greatest fixation, which really was enacting his social justice agenda through making tax rates punitive, not progressive which they already are. with that respect the president definitely scored a clear victory but the big conversation will be during the debt crisis negotiation, the debt ceiling negotiation in about two months. heather: but first, we managed to get through this in the senate, late, late night for a lot of folks, a lot of work. i was going to say two people but i will lump all

three into this. mitch mcconnell, harry reid and got to talk about joe biden. winners and losers in that threesome? richard? >> let me take a crack. for sure i think mitch mcconnell may be the unsung hero here, right? so until the last week or so he was very much taking a back seat to speaker boehner. now, there is some sense, no disreto anybody else in congress he is kind of the adult in the room on the republican side that decided a deal had to get done. knew how to do it calling in vice president biden. obviously they were able to kind of talk turkey in a way that got things done. i think really elevates his prestige even more. harry reid, again certainly in a position to obstruct something. he didn't. so could he have been more aggressive? perhaps so. i think this is kind of the outcome a lot of members of the senate, house, democrat and republican foresaw. i don't give any bad notes to harry reid on this.

heather: okay. basically because he went quiet and stepping into his place and appeared to be vice president joe biden. >> biden is clear winner even eclipsing the president who yesterday almost had what democratic strategists call a leon lett moment. the dallas cowboy who spiked football before he got into the end zone. when the president had obnoxious pep rally before the agreement was reached. joe biden stepped in. he spent many decades in the chamber. he has personal relationship with mitch mcconnell. depends how you view the deal. if you think mcconnell did the right thing he is winner. if you think he sold the republican out he is loser. harry reid basically went awol over the weekend. he is presiding over the senate that killed every single piece of legislation it received from the house. which is why we have government en1342 days without the senate passing a budget. you have dysfunctional leadership in the senate. i do think we actually got

something now that the house can consider and it could be viewed as positive depending where you sit. heather: have a feeling it will be another long day. we left out the most important element. that would be the american people. yet to be determined if they are winners or losers in this. thank you so much for joining us. >> heap knew year. heather: yes, you too. rick: poor, leon lett i bet he thought people forgetten about that. of course tony reminded everybody. colorado seeing a definite in snow despite the recent storms. they are still below average. is there anymore in the forecast? skiers want to know. meteorologist janice dean in the fox extreme weather center. hi, janice. >> happy new year to you. rick: happy new year. >> we're not seeing the snow they need to put a dent in the drought across the rockies. there is a snow debt. the good news we have snow cover. the bad news, in some cases it will take feet of snow to

put a dent in the drought we've seen all year long. taking a look at the country, 66% of the country is covered in snow. that is more snow on this day than we've seen in probably about 12 years. so that's the good news. snow is coming. we still have a lot of winter to go. hopefully the skiers will see more powder. looking at at satellite gery we have a little snow across denver. foreseeable future, five to seven days out not looking at any storms across the rockies. the our storm system across the south mainly a rain event. look at heavy rain across southeastern texas and louisiana and mississippi. north of that where it is really cold that's where we're seeing snow east of the great lakes and michigan here. that lake-effect snow machine is up and running. let's take a look at those temperatures. it's cold. it feels like winter outside. 17 in denver. you get the picture. you factor in the winds, what it feels like on your skin if you're not protected, you want to bundle up

outside feels like minus 3 in minneapolis. 4 in chicago. 10 in kansas city. 10 in denver. yes, winter is certainly here. a quick look at your new year's day forecast, fairly quiet. we're heading into quiet week as well which is great news. 39 in new york city as they continue the cleanup in times square. 24 in chicago. lots of sunshine. a little snow across the great lakes and central plains as the storm system moves through. northern rockies will get several inches of snow. otherwise very quiet and happy new year, rick and to you, heather. up 3:00 a.m. with me as well. heather: yes. >> working double duty, lady. heather: you're the energizer buddy. the janice dean, dancing machine. i don't know if i can keep up with you. >> i haven't danced yet this year. rick: first dance of 2013. heather: we feel blessed. we've been blessed by janice's dancing. >> we can now start the new year. heather: thank you, janice.

>> love to both of you. heather: it is a weird british tradition for guys who love crashing their cars over and over and over again. you like to do that, rick? rick: no, i try not to. heather: take a look at these pictures. this is from england. fearless or maybe crazy, one or the other, or maybe a little bit of both. drivers in wrecked cars, racing offramps at high speed, trying to jump over, ouch, a row of 10 other wrecked cars. rick: he didn't make it. heather: he didn't make it. but he got out though. the winner came as no surprise, that fellow right there. a car mechanic. rick: he knows how to soup up the engine. heather: do they win a new car? rick: they will need a new car after this. heather: that's good stuff. rick: all right. new threats of legal action expense a major gun retailer after the company canceled gun purchases in the wake of the sandy hook school shootings. why customers are saying they are being wronged here and what they're demanding in return.

[gunfire] >> i run up, grabbed the wheel, steer it to the right side of the road. take the keys out of the ignition. rick: a hero child managing to stop his school bus after the driver suffer as heart attack. one of many amissing moments from 2012 caught on tape. joplin, missouri, come back from a devastating tornado. man: and now we're helping the t recover from hurricane sandy. we're a leading global insurance company, based right here in america. we've repaid every dollar america lent us. everything, plus a profit of more than $22 billion. for the american people. thank you, america. helping people recover and rebuild -- that's what we do. now let's bring on tomorrow.

national retailer dicks sporting goods making headlines after the sandy

hook massacre by suspending its sales of rifles the company's customers are threatening legal action after the chain refused to fill gun orders placed in the weeks before the school shootings. instead of receiving guns they purchased some received gift cards or refunds. with the price of guns going up, buyers are demanding the firearms they already paid for. so where is this headed? joining us now, janice johnson and richard roth. both criminal defense attorneys. janet, do gun owners who placed the orders and didn't get their guns have a case? >> i don't think so. i'm sure there is a lawyer who will file a lawsuit but if you go to first year law school contract, there is no contract when you advertise a gun sale. what you have is something only lawyers could invent called invitation to treat. and --. rick: which means what? >> which means basically if you make us an offer we'll entertain it. these people came back and said we'll make you an offer and dick's can revoke the initial invitation that is

what they're doing. it is not gun rights. it is contract issue. who does have a lawsuit is manufacturer. they relied on dix and they might be able to get something out on this. rick: the manufacturer who entered into a contract with dicks to sell tear firearms on their behalf. that is interesting side point. let's stick with the gun owners or those who wanted to be become gun owners and ordered these weapons. richard, what do you think, is there a case. >> no, there is not. she's right. this is contracts 101. these are invitation to purchase. there was no contract entered into. the plaintiffs can go across the street, down the street, nearby neighborhood and by the same gun. number one there is no liability by dicks. there is no damages. if you can buy the gun somewhere else and have no damages, add to the fact that dicks most likely will remove that suspension sometime in the coming months. if they do so, then the gun owner can buy the gun in two, three, four months from now. there is really no case. i think it may be hard to

find a plaintiff's lawyer to take this case. rick: oh, no, come on. there is somebody out there. i know you guys. there's a lawyer who will take this case. since you both are in agreement. let me play devil's advocate and ask you, janet because richard mentioned no damages. but in fact gun prices are gone up steeply in a lot of places around the country in the wake of the shootings in connecticut. so isn't that a legitimate damage? that i just can't go down the street and purchase it at least not at the same price. that will cost me, another, whatever, $100, couple hundred dollars? >> that's right. i think the people are saying there is couple hundred dollars difference of the thing that happens in advertising anyone would be on the hook for that. if i drive by a gas station may i to exxon and i come back later the price goes up i can't ask exxon for my money back. advertisers can advertise something and can revoke that if there is no agreement or acceptance. i think that is what they're going to say. obviously these people are basically trying to make a

statement about dick's but dick's made a decision they're going to get more new shoppers than they're going to lose these old shoppers. and if i go in and buy a tennis racket, they figure that's a benefit to them. rick: clearly, richard, dick's must have known this would ruffle feathers. they have gone out of their way to try to appease these customers whose orders are not going to fill. giving them gift cards. refunding money. a lot getting personalized notes or e-mails explaining the change in policy at dick's sporting goods. they must have been trying to head this off at the pass, no? >> actually from an advertising perspective that is very good idea because what happened in newtown is unthinkable and unimaginable. so the people they may have lost from the sales of, unable to buy guns they will get back in dozens if not hundreds from the public statement they made. rick: are ard roth and janet johnson coming in on new year's day. we appreciate it very much. thanks for your time. best wishes to you and your

family. >> happy new year. >> you guys too. heather: talk about getting off or getting the new year off to a fast start, how some of our brave men and women are welcoming in 2013. >> more, more. , we replaced people with a machine. what? customers didn't like it. so why do banks do it? hello? hello?! if your bank doesn't let you talk to a real person 24/7, you need an ally. hello? ally bank. your money needs an ally.

rick: hef gets hitched again. hugh hefner, the 86-year-old "playboy" founder, maris his 26-year-old girlfriend, crystal harris. not sure which one is crystal harris. heather: she's the blond. rick: she's the blood. there she is. she looks lovely. a small ceremony at midnight. the two were supposed to be married in 2011. harris called off the wedding days before the ceremony. this is heavier in's third marriage. we wish them well.

heather: 2012 saw many memorable moments caught on tape. fox news's jonathan hunt has a look back at the wild, the amazing and the heroic scenes that made 2012 truly a year to remember. >> reporter: surveillance cameras are all around us. worldwide recording an estimated 4 billion hours of footage every week. and with a growing number of americans armed with smartphones we're seeing caught on camera moments like never before. 30 million surveillance cameras deployed in the united states catching your every move. >> that was probably one of the funniest things i ever have seen in my life. >> reporter: one wild police chase. florida cops try to collar a suspect riding a horse down a busy road. officers say he was riding under the influence. no shirt, no shoes and for this guy, definitely no service. one wal-mart shopper letting the all hang out. in new jersey a toddler put

through the spin cycle as the door locks and the washer starts. a quick thinking laundromat employee flip as circuit breaker, sparing the child. >> i was scared the kid died, you know? >> reporter: dramatic video as firefighters and police investigating an electrical vault, knocked off their feet in a series of powerful explosions. two men suffered first agree burns but have recovered. dash-cam inside police cruisers catching two amazing crashes. this kentucky trooper swerves to avoid a truck turning in his lane losing control, slamming into a home, sending bricks flying. and a heroic moment in lubbock, texas as a police officer investigating a fender-bender, push as woman out of way of a speeding car. his cruiser, making a 3360 degree spin in the impact. some video released for safety sake. boston's transit station

cameras showing a woman in a mobility scooter trying to use the up escalator. tumbling, nearly crushed but she is okay. as you can see, she was able to walk away. dash-cam as in portland's commuter train, showing terrifying close calls. people running across the tracks. some mere seconds from contact. and a delaware woman in a close shave. >> she stepped one foot out. got the second foot out. that i am came like three seconds and wiped whole car out. >> reporter: amateur video catching our eye. >> put your damn seatbelt on. pull it over!. >> reporter: this detroit man trying to make a citzens' arrest on a cop. in the man it was the man behind the camera in trouble, cited for reckless driving. the happiest day of their lives turning into a hotel lobby brawl between two wedding parties in philadelphia. shouting, heckling, fights and arrests captured on a

man's cell phone. cops called after bargain shoppers got into fisticuffs inside this california store, the day after giving thanks. [shouting] now some of our favorite caught on camera moments. while hurricane sandy raged a con-ed explosion seen from street level in brooklyn. this is the moment power was knocked out affecting millions in new york city. a heart-stopping scene for any parent. a mother loses track of her baby stroller. her child nearly struck by oncoming traffic. luckily a garbage truck driver is able to alert others and stop the carriage just in time. this thief didn't have ants in his pants. he had a puppy. the man stuffing a pricey pomeranian down his shorts. a middle-schooler in washington jumps out of his seat and bravely takes the wheel as his bus can reasons off the road.

his driver had a heart attack. >> i steer the bus to the right side of the road and take out keys out of the ignition. >> reporter: cell phone video after brooklyn girl falling three stories caught by a city bus driver hailed a hero. >> a hero is nothing but a sandwich. that is all i can say. i'm not a hero. i would do it for any kid. >> reporter: let's pray for more heroes caught on camera or otherwise in 2013. in new york, i'm john hadn't hunt. fox news. rick: thank you, jonathan. as we mark the new year today, a momentousy is upon us. it was exactly 150 years ago today, january 1st, 1862, that abraham lincoln issued the emancipation proclamation, the first legal document that recognized the freedom of african-americans from slavery. it stated that on this day all persons held as slaves in rebellious areas shall be then, hens forward and forever free, a major step

towards liberty for all at a very difficult time for our nation. heather: well, coming up harrowing images of a helicopter crash. coming up, where the chopper went down and whether anyone survived. rick: plus congress is back in session. less than three minutes from now. what are they going to do about the deal passed in the senate? we're live on capitol hill straight ahead

rick: so now it's up to the house of representativeses. lawmakers set to convene at this hour after the senate voted overwhelmingly for a fiscal cliff deal in the predawn hours. welcome to a new hour of "america's newsroom." heather: happy new year. brand new year. it's going to be a great one. the senate bill would prevent taxes from going up on the middle class and delay steep spending cuts for the military and domestic programs, but it's chances in the republican-controlled house remain unclear. rick: mike emanuel live on the hill. so, mike, the house officially in session, i guess, right now. so what should we expect? >> reporter: well, rick, we expect house democrats to meet in about 15 minutes and then house republicans to meet at the top to have next hour. then we should get a clearer sense of the way forward. vice president joe biden is going to meet with his house democratic colleagues in the next 15 minutes or so. he will encourage them to support the plan that the deal

that he cut with senate republican leader mitch mcconnell. earlier a leading house republican said he was not in the mood to be rushed. >> the senate's had months, the democratic-controlled senate's had months to look at that, and now they're expecting us to vote on something they passed hours ago without reading it? i don't think so. >> reporter: so we've heard some rumblings from some conservatives. utah congressman jason chaffetz tweeted this morning, quote: without substantial, real first-of year cuts in spending, i can't vote for the bill passed by the senate last night. some reaction just starting to dribble out, we will get a better sense of where everybody stands once thai had a chance -- they've had a chance to meet with their members. rick: pretty lopsided vote in the senate with a lot of republicans going ahead and voting for this. what is the case that some of those senators are making for why the house should do the same? is. >> reporter: well, they're saying that it avoids a massive

tax hike for everybody, so if you want to keep taxes from going up, this is the avenue you can take and, essentially, to stop taxes for going up for everybody. they say it's not a perfect deal, but senator lindsay graham, republican of south carolina, says house republicans can fight spending elsewhere in the new year. >> if we don't get this tax rate problem fixed for all americans, the economy's going to collapse, the stock market's going to go down, the defense department's gown to come unreallied -- going to come unraveled. we're going to get blamed, and about two weeks into this, we're going to fold like a cheap suit. so what i would advise my house guys, save your powder for the debt ceiling fight. >> reporter: if the house passes this compromise deal, the debt ceiling fight will be the next big battle that's, essentially, increasing the amount on the nation's credit card. and at that point republicans believe they can fight spending

here in washington. rick: keep us posted on what's going on, will you, please? >> reporter: absolutely. rick: mike emanuel, thanks. heather: as the house gets back to business this hour, what are the chances of a vote on the bill, the senate bill, today, and is it going to pass? david drucker is associate politics editor for roll call, and he joins us now. hello and thank you for joining us. >> happy new year. good to be here. heather: this agreement, once again, is between the administration and congress. it was negotiated completely between biden and mcconnell, and the house has not cleared this at all. the house has reconvened right now, today, and may not even actually take this up though or at all. do you think that boehner will bring the bill before the house, first of all, and what do you think they'll do? >> well, i don't know if they know yet what they're going to do. what speaker boehner is probably going to do is feel out his members and see where house republicans are across the conference. you know, there's about 230 some

odd of them, and i think what the speaker is going to try and figure out is how many republicans might he have for the pill in its current -- for the bill in it current form, or does the conference want to amend it and send it back to the senate? the administration has said it want toss sign the bill right -- wants to sign the bill right away. so there are plenty of democratic votes for this in the house. the question is whether you can get a majority of republicans. i don't see speaker baner and the leadership in the house -- speaker boehner bringing a bill to the floor that's going to get very few republicans and pass because of democratic support. and so heavy got to figure out where they are -- they've got to figure out where they are, and that'll determine whether they bring this up as is, whether they bring it up and amend it or outright reject it. heather: we just heard lindsey graham speaking, and he said, quote: save your powder for the

debt ceiling fight. >> i think lindsey graham's advice is actually very prudent, because i think that republicans are going to have a strong orer hand to play around the debt ceiling. it's also more of a theoretical thing with most voters where everybody knew their taxes were going to go up, and their first paychecks of the new year could reflect that if there's no deal that gets to the president and his signature. but the debt ceiling, it's all three theoretical about what happens if we don't pay our bills, and i think it gives the republicans a bit more negotiating room without the fear of having voters completely freak out on them. so i do think that that's where they're going to have a better chance of standing and fighting and winning something in terms of spending cuts and entitlement reform. of course, you know, the question there is what's the president going to do. he has told democratsn congress that he will not negotiate with republicans over the debt ceiling, that he's just going to demand an increase, and that's the end of it. so we'll have to see where that

goes. heather: has he really negotiated over spending cuts? this bill, as is, a 41 to 1 ratio of, you know, tax increases versus spending cuts. according to the congressional budget office, this bill cuts only 15 billion in spending while increasing tax revenues by 620 billion. so, you know, given an opportunity as you said to put some amendments in here, what do you think the house will go for first if they decide to go that route? >> well, look, it depends on what house republicans want to do. are they going to wait for the debt ceiling? because if they do wait for the debt ceiling, that will be a clash. they will not i can't the president the authority to -- grant the president the authority to raise the debt ceiling without significant spending cuts and entitlement reform. and you can see that happening in terms of how that negotiation or nonnegotiation's going to go. so the question here is are they going to try to amend this bill with a higher threshold for the tax, for little the tax, the current tax rates --

heather: which do you think they're more or likely to do? >> well, i don't think we know. i think that the end of the day given how many senate republicans voted for this bill in the early hours of this morning, i think there's actually a good chance that house republicans, you get enough votes, and you get this thing through, and they decide to fight on the debt ceiling. but if anybody thinks that they're going to, in a sense, cave or come up with a softer position in terms of spending cuts and entitlement reform on the debt ceiling, i think that's where they're wrong. that's where you're going to see a real fight. heather: yeah. we spoke with mick mulvaney, and he was talking about the possibility of adding amendments to it and going down the road that way. what would that do to the timing of all of this? >> well, it depends on how long republicans in the house want to let this bill sit out there for people to see it. they may not act for a couple of days, they may act right away. the reason i'm giving you a lot of guesses is because i think until house republicans really get a look at the bill and really discuss it, it's hard for

me to give you some real good, educated decisions about where they're going to go. i could pretended i know what they're thinking. they don't like the idea this isn't a full, across-the-board tax extension, we already know that. we know they don't like the fact that there are not enough spending cuts or any entitlement reform in here, but there are some good things in here they could probably point to, and there are a number of very conservative tea party-affiliated in the senate that did vote for this thing. so in a sense it's a little more complicated in trying to figure out where this thing goes than normal. the one thing i feel like i'm willing to bet a lot of money is is -- on is there will be a huge fight over the debt ceiling because that's where the republicans in the house and senate are going to demand spending cuts and entitlement reform, and the president's probably not going to want to do that, so that's where this is going. heather: and a lot of tax giveaways in this bill, a lot of rate changes as well, so a lot to look at in the next couple

hours. thank you so much, david drucker, we appreciate it. thank you. >> anytime. heather: and here's a breakdown of how last night's vote went. mike emanuel told us earlier the measure passed 89-8. three democrats and five republicans voted against, and three senators just did not vote at all. rick? rick: in other news this new year's day, some major developments concerning the health of secretary of state hillary clinton. doctors treating her say that they're confident she'll make a full recovery from a blood clot found between her brain and her skull, the condition caused by a concussion she sustained in a fall at her home last month. chief intelligence correspondent catherine herridge is live in washington with the very latest. what are we learning about mrs. clinton's condition? >> well, rick, we have a limited window into her condition for privacy reasons, but doctors who are familiar with the condition called right transverse sinus venus thrombosis say the clots

are serious, even potentially deadly because they can cause a stroke or brain swelling. >> this condition, which is very unusual, occurs principally in women. it's about three times more common in women than men. and in patients over the age of 65, about a third of them have no known cause. this is unusual. we would see about five of these a year in our large hospital. so i think we're dealing with something quite strange. >> reporter: in a statement, mrs. clinton's doctors say they are expecting a full recovery, though she remains in the hospital for a second day as they monitor her condition on blood-thinning drugs. here in washington there remains this bipartisan push to have mrs. clinton testify on the benghazi terrorist attack once her health is back up to where it should be. and the latest timing we have on that is perhaps sometime in january, the third week. rick? rick: catherine herridge live in

washington. thank you. >> reporter: you're welcome. heather: well, coming up, speaker of the house john boehner says there will be a vote, but will the house sign you have off on the senate's -- off on the senate's fiscal cliff deal? rick: plus, iran kicking off the new year with a barrage of missile tests right near the most critical passageway for oil in the whole world. what's behind the rogue nation's latest saber rattling? heather: and a new year's selling brace, well, it turns into this, a tragedy, when shots ring out. what police say started all this. >> we all heard, um, two shots. >> pop, pop, pop, pop! felt like a glock. it was right there. >> right there in the corner of that bar. @

♪ sing polly wolly doodle all the day ♪ ♪ hah @

heather: welcome back. a tragic new year's eve scene to tell you about. at least two people are now dead following a shooting at a fireworks show in sacramento, california. the shots rang out around 9 p.m., that's when a fight at a

sports bar spilled out into the street leaving the crowd running for cover. >> we all heard, um, two shots. >> pop, pop, pop, pop. felt like a glock. it was right there. right there in the corner of that bar. >> right in front of us. it was, like, seven shots, we heard who shots, and someone told us, and we all started to run towards the back -- >> was it random? did it seem random? >> it was nowhere. >> nowhere. somebody just popped him off. and the dude's laying on the ground right now. >> yeah. there's two people laying on the ground. there's a black guy, like the security guard was on the ground pointing at some dude, and that's when the horses and the cops came out and told him to get on the ground. >> where were you guys? >> we were right in front of it. we all running. we lost one person. we lost doug. and we went back -- >> we had to go back and get him because he was right in front -- heather: well, police immediately canceled the next

fireworks show which was scheduled for midnight. it's still unclear who could have done this. >> this isn't about getting rich people, this is about what it will do to the economy, what it's going to do to the average middle class person who works for a rich person. rick: that's republican senator rand paul blasting the senate deal on the fiscal cliff as a bad recipe for the economy, one of few senators who voted against it. he said it's just a way for democrats, as you heard him, stick it to rich people. senator paul's passionate opposition and his concern the senate deal could kill jobs could resonate in the house where the gop holds the majority of votes. kyle harrington is founder of harrington capital management, and as we just saw -- first of all, happy new year to you. we just saw a live picture from the floor of the house where lawmakers are now going to start talking about this deal that was passed in the wee hours of this morning in the senate. what do you think they should do? >> well, it's unfortunate that we have to wait until the end of the year like this, the last minute to push through a deal.

we all want a deal, rick, and as much -- i want a deal as much as anybody because i think that a deal happening creates less volatility in the equity markets and can put people in the january 2013 mood to feel like washington has our income statement in order. however, the bill that i've read through -- and i haven't read the whole bill -- 600 billion in additional tax revenues and only 15 billion in spending cuts, a 40 to 1 ratio doesn't make sense to me. so it'll be really interesting for the house to take a look at this lengthy bill to see where it all shakes out. in addition to that, the 3.8% surcharge in obamacare that's going to take place on investment income that takes place this year, early 2013. i mean, this is a lot of additional taxes with not any real spending cuts, in my opinion. rick: you know, your job is to help people manage their money, and investors seemed, anyway, to like it yesterday when word began to spread 245 -- that the

framework for a deal was beginning to take shape in washington d.c. the markets are closed today, but why do you think the markets had that reaction? they just want to see something get done, don't they? >> yeah, rick, exactly. you and i have spoke about this in prior shows. i think, again, a deal getting done creates at least some finish to, you know, what's going on in terms of the legislation out of d.c. and a clearer picture out of d.c. anytime is always better than not clarity with respect to the equity markets. but what i don't want to do here is i think there are two issues, the fiscal cliff and the debt ceiling. and it seems like the republicans are saying, well, if we can just get this fiscal cliff through, we'll have more leverage on the debt ceiling. i don't want to see that happen. i want to see if congress can look at this bill and see if it makes sense for the citizens across the board as well as the economy going forward and then address the debt ceiling which is a whole other issue in the coming weeks. rick: give our viewers some free

advice. what are you telling your clients investment wise for 2013? what looks good to you? >> all right, watch this. i think you've got to be protective over your cash, i think that the securities you're in have to be liquid in nature which means, essentially, at any given time you can trade out of of these securities and be in cash within three business days. i would not take heightened risk here at least for the first quarter because i think gdp growth is going to be sluggish. and so i would be protective and preserve my capital, making smart investment decisions with liquid assets. rick: kyle harrington, always good to talk to you. my very best to you and your family. founder of harrington capital management. i'll see you again real soon. >> happy new year. heather: coming up, a deadly reminder of the battle for women's rights in pakistan. five women killed, all teachers, at a primary school for girls. more on this investigation ahead. rick: also, a controversial ruling by a judge dealing planned parenthood a major blow in one state in this country,

but this may not be the end of the story. we'll tell you about it. heather: and from covert cia affairs to twilight tryst -- like that world? rick: yeah, you said it well. heather: yes, it has been quite a year for scandal. a look back at some memorable headlines from 2012. >> i'm sure glad she's been on my side for 37 wonderful years. needless to say, i'll never be able to adequately express my love and appreciation for all that she has done, but i can at least say here this morning thanks, hol, i love you. [applause]

rick: welcome back. a setback for planned parenthood in the state of texas. a judge there upholding a state law that bans all state funding for the organization's family planning programs. and ruling that legislators in texas can exclude clinics and

doctors from receiving taxpayer dollars just because they advocate for abortion rights. another hearing is scheduled with a different judge next week, so this fight is not yet over. ♪ heather: well, the old year going into the history books with some major scandals from cycling legend lance armstrong to former cia director general david pray cause and a whole lot of others closing out the year in shame. arthel neville takes a look at some of the not-so-great moments of 2012. >> reporter: infidelity, abuse and tax dollars thrown out the door. 2012 was full of scandalous headlines with many surprising names caught smack in the middle. not even elmo or the head of the cia were i immune. from tour de france to tour desame. lance armstrong's name is tarnished over doping allegations that hunted him for much -- haunted him for much of his cycling career.

he is stripped of all seven titles. hulk hogan gets his hands outside the ring, his sex tape going viral this year. elmo puppeteer kevin clash resigning after 28 years, accused of having sex with underage boys. and 9/9/9 all but forgotten. herman cain ending a presidential bid saying cheating rumors were ruining his marriage. former california governor arnold schwarzenegger sure came back with even more details to his very public cheating scandal. kristin stewart's real-life tryst, the 32-year-old admitting getting too cozy with rupert sanders. john travolta rubbed the wrong way of after two male therapists file lawsuits claiming sexual assault. and the pap rats -- paparazzi getting, well, up close and personal with a topless,

sunbathing kate middleton. >> what do you have to say about the verdict? >> reporter: 2012, one of the most infamous cases of sexual abuse. former penn state assistant coach jerry sandusky sentenced to at least 30 years behind bars for sexually abusing young boys. the pbc accused of abusing girls, and the secret service gone wild as a dozen agents are implicated for hiring prostitutes during a presidential trip to colombia. a difficult year for business leaders as well. >> we made a mistake. i'm absolutely responsible. >> reporter: the chief executive of barclays, bob diamond, steps down after allegedly manipulating interest rates. and a yahoo! ceo' signing for -- resigning for falsifying academic credentials. but what could be more scandalous than the world of politics? jesse jackson jr. goes mia for several months, it's later discovered he's receiving treatment for bipolar

depression. federal authorities are looking into whether jackson jr. was skimming campaign funds to remodel his house. the congressman later resigned. a beleaguered gsa accused of wasting your tax dollars, this worker raps about how he dreams of being the commissioner and wasting the government's money on cash bonuses to his fellow bureaucrats. >> today's vote may make for good political theater in the minds of some, but it is at base both a crass effort and a grave disservice to the american people. >> reporter: and for the first time in history, a sitting attorney general held in contempt by congress after refusing to release more documents into the botched operation fast and furious. the obama administration coming under even more scrutiny over a september 11th terror attack at the u.s. consulate in bicep ghazi that killed -- benghazi that killed the u.s. ambassador and three other americans. u.s. ambassador to the u.n. susan rice first attributed it to a spontaneous uprising about

an anti-muslim film. that turned out to be false, and now congressional leaders in both parties are demanding answers. and likely the most scandalous incident of the year throwing america's national security into crisis, former cia director david petraeus stepping down over an affair with his biographer, paula broadwell. it's later revealed that the top u.s. general in afghanistan, john allen, is under investigation for inappropriate communication with socialite jill kelley. but the intermingling doesn't stop there. the fbi agent who began this entire investigation is himself accused of sending this picture to kelley. he later says it was e-mailed as a joke. yes, 2012 was the year of falling from grace for many of these personalities, and in the digital world we all live in, the question for 2013 is not so much what the next scandal will be, but when will it hit, and who's in the headlines? in new york i'm arthel neville,

fox news. rick: i am so glad to have not seen you in any of those scandal clips. heather: no scandals for me. [laughter] we work too much to be scandalous. rick: well, the house is officially back in session right now. there's a live picture as we wait to see if they'll even decide to vote on this package, this deal to avoid the fiscal cliff that was approved overnight in the u.s. senate. we'll keep our eye on that. heather: plus, an international act of defiance as iran tries to make another play for the strategic strait of hormuz. rick: and rescue gone wrong. how a helicopter called to save a drowning swimmer ended up needing to be rescued as well.

heather: welcome back. a fox news alert. the house is back in session. a short time ago the house republicans decided to meet again and a short time from now they will meet privately to discuss how to move forward now that the senate has passed a fiscal cliff deal. house democrats right now in a meeting with vice president joe biden who helped broker the agreement. president obama of course encouraging lawmakers to quote, pass it without delay. senior white house foreign affairs correspondent wendell goler is live at the white house this morning with the very latest. wendell, a whole lot is happening right now. what does the white house expect the house to do today? >> reporter: it is unclear,

heather. as you point out the vice president just arrived at the capital to rally democrats to support the compromise measure that senate passed last night. he wouldn't predict how the house will vote. house republicans will not decide to vote until after they studied bill. it doesn't contain any significant spending cuts and that will make it a tough sell to house republicans. yesterday the president aimed to put some pressure on them in an appearance that showcased middle class americans who would be hit by a tax hike. mr. obama said, he would have prefered a bigger deal that included spending cuts. >> a grand bargain, whatever want to call it, that solves our deficit problems in a balanced and responsible way, that just doesn't deal with the taxes, deals with the spending in a balanced way so we can put all this behind us and just focusing on growing our economy. >> reporter: but the president said with this congress that is too much to hope for. early this morning after the

senate vote he released a statement that read quote, this agreement is the right thing to do for our country and the house should pass it without delay. if republicans compromise on spending cuts you might ask, what did the president give up? his compromise was raising the income level protected from tax hikes and more importantly, making the tax cuts permanent, something president bush wasn't able to do because he wasn't able to get a 2/3 majority of the senate to go along back in the early 1990s. when the senate voted early this morning all but five republicans and three democrats approved the measure. the deal also raises the value of estates protected from the death tax, permanently indexes the alternative minimum tax for inflation. with no spending cuts the deal does not solve the fiscal crisis. it just delays it a couple of months when republicans have more leverage because the president will need them to extend the nation's debt ceiling. heather. heather: 41 to one ratio of tax increases to spending

cuts. wendell goler, we appreciate it. rick: well, we just have gotten video of the vice president who just arrived on capitol hill. he is there to talk to house democrats. unlikely he will need to twist too many arms there. the democrats are likely to go along with this because it has the president's seal of approval. it will be republicans who need to be convinced about this we've known about the fiscal cliff for months yet the senate couldn't get anything passed until early hours in the morning passed deadline still technically over the cliff. what does this say about how washington functions these days? joining us toe debate, jehmu green, former president of the women's media center. and dee dee behnke, former campaign aide for president george w. bush. happy new year, ladies. i'm so happy to for you to join us today. jehmu, this is a mess, isn't it. >> it is absolutely a mess, rick. happy new year. this is what is happening in

d.c. is poor and pathetic. if this is new normal we'll have to make serious changes. there is a lot of blame to go around. i think the brunt of the blame lands on republicans who for the last two years have forgotten their serious responsibility of making government work. i think a lot of freshmen members came in the 2010 congress actually wanted to break government, and they have done that effectively. but the blame doesn't end with republicans. it starts with republicans. it moves to even the high per active into news media which we're a part of. the voters are to blame because they have gotten rid of moderates who helped legislation move forward and they have replaced them with really, really idealogical extremists and put insurgents in our legislative body. rick: let me turn to dee dee. you put a lot out there. i want to give her a chance

to respond. jehmu says the blame lies mostly with republicans. is that fair. >> no, that is not fair. the blame lies in d.c. this is corrupt bargain. 41 to 1, are you kidding me? all taxes and no spending cuts? this is outrageous. we might as well celebrate the chinese new year because they own this. this is no happy new year here. washington deis broken and has got to change. i hope americans think aboutp running for congress think about who they like to run. the folks there are not getting it done. none of them across the board. let's be honest, jehmu, nobody is getting the job done. it is really terrible. our debt is crushing our country. >> agree with you, americans are fed up and they want solution oriented problem solvers. >> everyone is to blame in d.c. not just republicans. >> i will give a solution here. >> all right. >> is women. >> i agree with you. >> really time to get rid of these men who have basically,

just rejected any sort of responsibility. rick: hold on a second. hold on a second. before you start, before you start blaming all the guys in washington i'm sure there are some, some female lawmakers who have played a role in all of this going on. i understand the point that you're making jehmu. let's take a look what is going on the floor of the house right now because there's a good chance, i guess, dee dee, that this won't even be brought up for a vote. i think that a lot of people out there, whether they're republicans or they're democrats, would hear the possibility that this deal struck in the wee hours of the morning this morning in the senate might not even be brought up for a vote because of a tradition about the majority. people don't understand that they want to see something get done. >> you know what is infuriating about this these guys, mostly their problem, they haven't been there how many days. they have been on vacation. they have barely been in washington. act like we're here to work hard for the american people and we're up late and trying to get this done. no way. it is a lame deal.

deal or no deal, i say there should be no deal. this is bad one. why should they vote on a bad deal? forget it. fall off the cliff which we have, start at ground zero and bring it up and finally get our country back on track. rick: jehmu, for better or worse isn't this the way it is supposed to be. we talk all about dysfunction and how turns people off, isn't this when the founders intended having to pass laws in our country? >> absolutely, not, rick. i don't think our founders intended for our government not to be able to basically do its basic functions. >> afreed. >> there should be disagreement. there should be a really robust debate, but there also has to be compromise. i think that is what our founders understood and really expected from our elected leaders. but we have people in congress right now who see compromise as a dirty word. they see it as a like a four-letter word, as something they have to stay away from. and it is not, not just the

gop. because many democrats also run against washington. run against government. >> jehmu is exactly right. rick: dee dee, last word here. 10 seconds. >> the fat cats are not getting it done. we need to forget rid of them. forget it. it is not a good deal. we need to do what is right for the american people and this ain't it. rick: happy new year. happy and healthy. see you again real soon. heather: amateur video capturing a harrowing moment whether a rescue helicopter crashes into the water off of a crowded beach in brazil. take a look. police say that this chopper was trying to rescue a drowning swimmer when it suffered engine failure. you can see what happened next. look, plunging into the ocean. well the good news the crew managed to escape before the helicopter began to sink. the four crewmembers and the stranded swimmer, by the way all able to swim to shore. they survived with minor

injuries the helicopter was later recovered by the local fire department. rick: meantime a new year's eve celebration in the ivory coast in africa turns deadly. at least 61 people were crushed to death, 200 others injured at a stampede at a fireworks show. the officials said the flow of people entering into the main stadium led to a quote, a very large crush. the interior minister says all proper security measures were in place during the show. heather: gun men killing five female teachers and two others in pakistan's troubled northwest tribal region. this is new video of the scene. the group of victims ambushed traveling in a van on their way home from a community center working at a primary school for girls. the attack, reminder of risks faced by educators and aid workers especially by women, in area where militants target women and girls just trying to get a education. in a case that grabbed

international attention in october a taliban gunman in the same pakistani province shot a 15-year-old girl for criticizing the militants and promoting education for girls. rick: wow! a defiant new move out of iran. the country's navy staging a military standoff near the strategic straight of orm muse. it is a vital passage way for 1/5 of the world owes oil supply. leland vittert is following this from our jerusalem bureau with more. leland? >> reporter: rick, the iranians now say if they were attacked in any way they will indeed shut down the strait of hormuz, as you said, home to 1/5 of the world's oil supplies transitting back and forth every single day. you might say, here we go again on the sabre-rattling by iran. the war games largely are. they showed off some anti-ship missiles. also some anti-ship mines that would be used if they did want to shut down the strait of hormuz. largely these military games by the iranians have seen as

smoke and mirrors, a lot of sabre-rattling. long on the threat. not really that long in terms of how much they're showing up here in terms of real firepower. you have to look at this in the broader context where it comes. we're a couple months away from prime minister benjamin netanyahu's of israel red line he called it when the world must take action against iran's nuclear program. iran in these games is showing off their trump card if they were attacked. clearly one of the three options is an attack by israel, an attack by the united states or some kind of negotiated settlement here to iran's nuclear program. the attack by israel would have to come much sooner than an attack by the united states because israel has such a limited long-range bombing capability in terms of being able to hit those iranian nuclear facilities. the israelis also want to have you try to have some type of credible threat on the table against the iranians when there is negotiations. the iranians on the other side want some type of credible threat. not only their nuclear program continuing but also what they would do in the

event of an attack. over the next couple weeks, rick, we can expect to see more rhetoric from here from israel as we lead up to the israeli election about iran. back to you. rick: thank you. leland vittert in jerusalem for us. heather: coming up the federal government ringing in a the new year with a raft of new laws, hundreds of them in fact but some companies are standing up for their principles despite staggering financial penalties that kick in starting today. we have details in a live report. north korea's young leader making a surprise new year's address calling for peace with his archenemy to the south. what is behind the sudden shift and what it could mean for u.s. interests in the region this is $100,000. we asked total strangers to watch it for us. thank you so much. i appreciate it. i'll be right back. they didn't take a dime. how much in fees does your bank take to watch your money?

if your bank takes more money than a stranger, you need an ally. ally bank. your money needs an ally.

heather: we are following new developments in north korea. the young leader, kim young un, making a rare new year's address calling for end to confrontation between the two koreas, as quote, a all out struggle to overhaul the country's economy with the same urgency scientists put into the lawn of a long range rocket last month. what does it mean for south korea, u.s. and our allies in the region? major general bob scales, military analyst joins us right now. thanks for joining us. happy new year to you. >> happy new year to you, heather. heather: how significant is

the speech? this is first televised address by a north korean leader in 19 years. is this all rhetoric? what do you make of it? >> it is all rhetoric. by my count this is the 26th time a north korean leader tried to dangle the olive branch in front the south and of course it has come to nothing. the only thing really changed here, heather, is the idea now that the north koreans develop ad three stage military rocket. a nuclear warhead is made a little smaller some day will be able to reach the western united states. all of sudden this is not just south korea's problem. it is our problem. heather: do you think today's announcement has anything to do with the rocket launch back in december? >> of course it does. in the minds of the north korean leadership, this sort of heightens their gravitas, if you will in the region and they're going to use this as a leverage to try to

gain resources from the south, mainly food and fuel. they have done this dozens of times before. what we have to keep in mind the next big thing would be another nuclear test. if that occurs and it may occur within the next three or four months, the whole strategic picture in the region is going to change. heather: the last rocket launch in september, it was condemned by the united nations security council as a violation of sanctions banning it from conducting further long range ballistic missile tests. >> right. heather: we know about the sanctions. they don't seem to work. so what do we need to do? >> a couple of things. first of all the vulnerable center of gravity of this regime its is new. kim jong-un is untried. the first time ever the north korean population is being opened up through social media and pirating of dvd's and computer programs on the internet. the great weakness of the regime is to expose to the citizens of north korea what a terrible, terrible country

they live in, how poor their living conditions are. and the second thing is, from a military perspective we have got to get tough with them. any effort to open the country up to, to lift sanctions, to perhaps offer them food or fuel aid i think is, should be immediately off the table, heather. heather: major general bob scales. thank you so much for joining us. we always appreciate your insight. thank you. >> thank you, heather. rick: well, hundreds of new laws taking effect today, january 1st. they range from the practical to the down right ridiculous. including what you can and can't do with a wild hog. new laws in the new year. that is straight ahead. heather: what can't you do with a wild hog? plus, how people around the world are marking the first day of the new year. extreme new year's traditions up next. ♪ [ male announcer ] the way it moves. the way it cleans. everything about the oral-b power brush is simply revolutionary.

oral-b power brushes oscillate, rotate and even pulsate to gently loosen and break up that sticky plaque with more brush movements than manual brushes and even up to 50% more than leading sonic technology brushes for a superior clean. oral-b power brushes. go to oralb.com for the latest offers. just begin with america's favorite soups. bring out chicken broccoli alfredo. or best-ever meatloaf. go to campbellskitchen.com for recipes, plus a valuable coupon. campbell's. it's amazing what soup can do.

heather: welcome back. new year's eve usually gets all the glory but you might not know that there are men of new year's day celebrations all over the world. we have some to show you. in vatican city, first. the pope benedict xvi is ushering in the new year with a mass at st. peter's basilica in honor of church's world day of peace. over in london more than 10,000 performers from over 20 countries have shown up to take part in the city's an y'all new year's day parade. swimmers in the netherlands find more extreme, wow, that is a long jump, extreme to say the least, braving freezing weather for their annual dip into the north sea. and running right back out. back here at home the annual rose parade in southern california in full swing.

some of the highlights of this year's parade include a virginia couple that are getting married on a float, rick. rick: good. i don't know what that signifies but wish them the best. romantic to get married during the rose bowl parade? heather: sure. rick: not bad. the new year also made a new beginning it also means a lot of new laws to follow. more than 400 around the country all going into effect today. shannon wreem is live in washington with a complete break down. >> reporter: hey, rick, silly or serious thousands of new state laws meant enough to some group of lawmakers to actually get passed and get on the books. in kentucky it is noll illegal to release feral or wild hogs into the wild. down in florida a swamp buggy will not be legally considered a motor vehicle. and there are a number of employment related measures as well including these. in oregon it is now illegal for employers to advertise for a job opening if they will not actually considering applicants who are currently unemployed. in both illinois and california it is now illegal for employers to ask for or

require you to hand over the passwords to your social media accounts like facebook and twitter. that goes for both applicants and current employees. other states already have similar laws. in all more than 29,000 laws were passed by state legislatures in 2012 and many of those are kicking in today. of course it's been a very busy year at the federal level as well and many new regulations stemming from laws passed over the last couple of years will phase in today including, an hhs mandate that employers who provide health insurance coverage must make sure it includes free access to a number of birth control methods, some of them controversial. there is an exemption for those defined as religious employers but there are more than 40 cases pending by employers saving that's what they are and the obama administration is refusing to recognize that. hobby lobby is believed to be the largest employer challenging the mandate. just days ago it was denied a emergency injunction having to comply by supreme court justice sonia

sotomayor. founder and ceo david green said quote we simply can not abandon our religious beliefs to comply with this mandate. mining the company is potentially facing fines of $1.3 million a day, starting today, rick. rick: shannon bream live for us in washington. thank you. heather: well the house is back in session for some rare new year's days business. you're looking live at the house floor right now. it is still unclear whether members will take up the fiscal cliff bill which was passed 89-8, by the senate overnight. right now house democrats are meeting with vice president joe biden. we expect to hear from them when that meeting breaks up. rick: that is of course darrell issa, the congressman from california, one of the republicans who will be meeting very soon as well as the republican caucus needs to decide what they want to do now that the senate has passed this. do they want to grow along and give their support to

this bill? do they want to possibly make some changes and send it back to the senate? a lot for pub bes in washington to decide. we'll keep you posted. heather: and other business for them to take care of as well today. rick: that is correct. two ahead. heather: we'll be back. i'm heather childers. rick: i'm rick folbaum. stay tuned for the best of o'reilly. heather: happy new year

♪ fare thee well ♪ farewell ♪ mr. gloom be on your way ♪ ♪ though you haven't any money you can still be bright and sunny ♪ ♪ sing polly wolly doodle all the day ♪